Expert Warns Pi Network to Avoid Pitfalls Seen in OM Crash

Crypto Expert Warns Pi Network to Set Guardrails After OM Fall

As the Pi Network gets ready for its long-awaited open mainnet launch, tensions are rising in the community. The recent Mantra (OM) collapse is now being considered a dire warning. A well-known crypto analyst, by the name of Dr Altcoin, is calling on the PiCoreTeam (PCT) to take drastic measures now—before it's too late.

OM Crash Shakes the Crypto World 

The OM token sent the market reeling after plummeting from $6.32 to as low as $0.60 within one day, a drop of 23.31% as per the data from coinmarketcap. This huge drop—more than 90%—resulted in over $6 billion in losses across the crypto market. Traders who had purchased OM mere days before the plummet lost approximately $400 million.

Whereas the official excuse blames mass liquidations, most in the cryptocurrency community opine it was a "carefully planned dump." Others even think it may be a rug pull. Whatever it is, it has put alarm bells on for future projects like Pi Network.

Dr Altcoin, a popular crypto analyst on X (formerly Twitter), thinks the PCT must move quickly. He asserts that the OM incident is an eye-opener for the entire crypto space and must not be overlooked—particularly by the PCT.

The OM incident is a wake-up call for the whole crypto space – evidence that tighter regulations are desperately required," stated Dr Altcoin. "It is also a HUGE lesson for the PCT as we move from the Open Network to the Open Mainnet."

Pi Network Called to Establish Guardrails

Dr Altcoin is requesting the PCT to implement robust safeguards and regulations—what he refers to as "ecosystem guardrails, for the Pi Network. These would prevent major price crashes, dark dumps, or any form of market manipulation. He feels these reforms should be implemented prior to the open mainnet launch. Otherwise, the Pi Network may suffer the same issues that OM had.

He also recommends streamlining the "Know Your Business" (KYB) system. In his opinion, slowness in KYB approvals is damaging community trust and pushing projects aside. Even one project, PiDaoSwap, ended up launching its NFTs on the Binance Chain rather than waiting for it. "If they expedite KYB for CEXs (centralized exchanges), it may generate monstrous demand for the coin ahead of mainnet launch," Dr Altcoin said.

Growing Doubts About the PiCoreTeam

Increasingly, more individuals are questioning the transparency of the PCT. Dr Altcoin was not shy in his criticism, stating, "One thing is clear about the PCT – they are not transparent."

The team has been under fire for ambiguous token burning and locking rules. Throw in the KYB approval delays, and you have a sense of increasing frustration within the Pi Network community.

What's Next for Pi Coin?

Although the Coin is performing well currently, as per the reports of coinmarketcap, it has increased by almost 26% over the last week to $0.7469, most investors are concerned about a potential drop. Some are afraid that the price will fall as low as $0.30 if problems persist. They can either heed the warnings and repair the system—or risk doing it all over again.

The next few weeks will be decisive for Pi Network. If the team can learn from OM's errors, the community could finally receive the safe and stable open mainnet launch they've been anticipating.